credit-risk-commercial real estate lending

Background

Nicole Lux is a real estate professional in London and Frankfurt with more than 15 years experience in real estate equity investing and debt analysis. Throughout her career she has worked at major international banks in CMBS loan origination and distressed asset workout. Since January 2016 she is a Senior Research Fellow at De Montfort Unversity responsible for the De Montfort Commercial Property Lending Report (UK).

She has a PhD in Agricultural Economics from the University of Reading, and completed the London Business School Investment Management programme. She is an active member at the CFA UK Society, a member of the Association of Property Lenders and a member of the INREV research committee.

‘I have been a professional in the area of real estate for the past 15 years. My professional experience encompasses the different areas of real estate investment in a comprehensive manner. Throughout my professional career I have collaborated with many leading academics in the field and, I have realised that market practices and perceptions in the field of real estate are changing fast. However, teaching approaches and materials have not kept up with these changes. Today, there are strong forces in the financial industry pushing for the less developed commercial real estate market to adopt more complex quantitative approaches in assessing real estate risk. However, this trend has taken a long time to filter through to real estate courses at Universities and other institutions. If real estate courses are to be kept current with market developments there is a need for academics to take into account these new ideas and practices and integrate them in their teaching approach. My contribtution to this development in form of a book can be seen as an inter-disciplinary approach to analyse real estate risk using quantitative methods.’

Synopsis The aim of the book is to introduce the basic ideas of financial theory and the use of quantitative and qualitative risk models in the field of real estate finance. It is intended to cover the entire spectrum of available real estate investment products, from real estate equity to derivatives and debt products and to describe the key risk modelling approaches used today. The analysis of each of these investment areas is an integral part of every real estate graduate or undergraduate course. This book is aimed at students and professionals of real estate investment, real estate finance, surveying and land economics who do not have a comprehensive mathematical, statistical and programming background. But it will also give students from other finance and accounting courses an understanding of how to apply models from equity and fixed income analysis to real estate as an alternative asset class. By using an interdisciplinary approach it closes the gap between real estate and other financial asset classes and shows how market and credit risk models from these areas can be adopted and adapted to analyse real estate investment. It also presents a unique approach of integrating conceptual material with the use of Microsoft Excel and Excel VBA (Visual Basic for Applications). Most books have not integrated a real application of excel and VBA risk model in real estate analysis. This book addresses this deficit in relevant literature by giving a step by step guidance to build financial real estate models in excel.